Shipyard workers voice oligopoly concerns over Hyundai Heavy’s proposed DSME takeover

While Seoul might have anticipated overseas monopoly concerns to be aired about the proposed merger between two of its largest shipyards it is on home soil where anti-competition fears are being voiced most loudly to date.

The Korean Metal Workers’ Union and union members from Daewoo Shipbuilding and Marine Engineering (DSME) yesterday submitted a petition to the Fair Trade Commission in Seoul, maintaining the merger between Hyundai Heavy Industries (HHI) and DSME undermines free competition and would create an oligopoly in South Korea’s shipbuilding industry.

“The merger between Hyundai Heavy Industries and DSME will take a toll on the current employment structure and the life cycle of the country’s shipbuilding industry,” said the union.

“Workers in the field have no choice but to be sensitive towards the merger.”

Splash data suggests HHI and DSME would command a global orderbook marketshare of 21%, a dominance never before seen in modern shipbuilding history.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
Back to top button